S&P cuts Longview Power

S&P said it lowered the rating on Longview Power LLC’s senior secured debt to D from CC after the company filed for Chapter 11 bankruptcy on April 14.

The downgrade follows Longview's announcement that it has filed for Chapter 11 bankruptcy protection under a pre-packaged reorganization plan.

“Prepetition credit agreement claims amount to $316.48 million and will receive pro rata share of 10% of new common equity, exit facility subscription rights and new warrants. Under the reorganization plan, each holder of an allowed prepetition credit agreement claim that participates in the exit facility will receive its share of 90% of the new common equity,” S&P said in a news release.

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